564. Property in which third party is interested.

Where a security is granted over a property which belongs to the bankrupt and a third party jointly, then, in so far as the bankrupt's interest is a beneficial one, the creditor is secured to that extent, and he may not prove in the bankruptcy without acknowledging the security1. There is no difference between property owned by the bankrupt as tenant in common and property owned by the bankrupt as joint tenant with the third party. Where the property, if given up, would augment the bankrupt's estate, credit must be given for its value as security2.

Where a creditor has